Saturday, October 31, 2020

US Extends License for Chevron's Operations in Venezuela

January 20, 2020

© Andrei / Adobe Stock

The U.S. Treasury Department on Saturday renewed a license allowing Chevron (CVX), the last U.S. energy company operating in Venezuela, to continue working in the country until April 22.

In January, the United States imposed sanctions on Venezuela's state-run oil company PDVSA in an effort to oust President Nicolas Maduro, though he remains in power. The Treasury issued Chevron a six-month license to operate, however, which has been renewed in three-month periods.

Chevron has been in Venezuela for nearly 100 years and has about 300 direct employees there. Its joint ventures with state oil company PDVSA support about 8,800 people.

The Treasury Department said the license does not authorize transactions related to shipments of diluents, which Venezuela needs to thin its heavy oil for processing.

The license additionally covers oil field service companies Halliburton Co, Schlumberger (SLB), GE's Baker Hughes and Weatherford International (WFT). All have largely halted operations in Venezuela because of the instability.

The Treasury also on Saturday extended a license allowing all transactions related to PDVSA's 2020 bond, which is backed in shares in U.S. refiner Citgo Petroleum Corp.


(Reporting by Angus Berwick; Editing by Catherine Evans)

Related News